Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.

Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.

The following questions should be addressed when considering reasonable excuse

Has the supplier relied on the customer to establish the correct liability of the supply?

Has the supplier agreed to self-billing and does the supplier appear on the customer’s list of suppliers agreeing to use self-billing?

Irrespective of the first point under this heading, is it reasonable to expect the supplier to be fully aware of the correct liability i.e. are they a major company experienced in this type of supply?

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